With tyres the flavour of the weekend after Max Verstappen’s exploded (Pirelli) in the opening stages of the Australian Grand Prix over the weekend, it’s fitting that tyre distributor RPM Automotive Group (ASX: RPM) has been appointed the national sub-wholesaler of Yokohama tyres in Australia.
The deal is set to redefine Australia’s automotive aftermarket landscape, establishing RPM as a key player in the distribution of Yokohama products across the nation, leveraging its extensive network and logistic capabilities to optimise distribution efficiency.
The agreement signifies a milestone for both companies, aligning RPM’s wholesale and retail networks with Yokohama’s reputation for quality and performance.
Under the terms of the agreement, RPM will serve as Yokohama’s preferred sub-wholesale partner, utilising its warehouse infrastructure to streamline distribution operations. Furthermore, RPM’s subsidiary, RPM Autoparts, will spearhead all distribution of Yokohama products.
CEO of RPM Automotive Group, Guy Nicholls, commented. “The distribution relationship not only enhances our extensive network and logistic capabilities but also positions RPM as one of Yokohama’s national sub-wholesale distribution partners, it underscores our commitment to optimising distribution efficiency.
“The relationship will drive efficiencies and provide benefits to both parties – providing many of our brands with access into the Yokohama network and allowing us to sell additional Yokohama brands into our network.
The significance of this partnership extends beyond the commercial realm, as Yokohama’s National Sales Manager, Tatsuya Kano, emphasised.
“With this strategic alignment, we will collaboratively seize further market share in the Australian tyre industry,” he said.
Australia’s vibrant automotive market, characterised by a high rate of car ownership averaging 2.05 cars per household, presents a lucrative opportunity for companies operating in the tyre supply chain.
For the Half Year ended 31 December 2023, RPM reported $56.9 million revenue which represented a 2.2% increase on the previous corresponding period. This flowed down to $2.2 million net profit after tax, a Company record, which was a 74% increase on the same period.
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, a bloodstock enthusiast and former equities analyst.
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1 Comment
Shraddha13
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Replyhttps://www.360iresearch.com/library/intelligence/press-on-tyres